GoPro share price dives after camera company announces disappointing sales and staff cuts

 
Chris Papadopoullos
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Shares in GoPro were in free fall after the announcement of poor sales (Source: Getty)

Shares in wearable camera company GoPro dived 22 per cent in after-hours trading yesterday after the company estimated revenue would be below expectations.

GoPro said it is expecting sales revenue of $435m (£301m) for the final three months of 2015, below analysts' expectations. Shares dropped to $11.22.

“Fourth quarter revenue reflects lower than anticipated sales of its capture devices due to slower than expected sell through at retailers,” the company said.

The company also said it was slashing its workforce of around 1,500 by seven per cent and is planning for $5m to $10m of restructuring costs during the first three months of 2016. It has increased its headcount by 50 per cent a year over the last two years.

Shares of Ambarella, a GoPro producer, dropped 10 per cent in after-hours trading.

The company also said Zander Lurie had resigned from his role as senior vice president of GoPro Entertainment and has been appointed to join GoPro’s board of directors.

GoPro was founded in 2002 and floated on the stock market in 2014.

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